What section of the Bhc agreement discusses post-termination competition for Master Franchisees?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
11.2 Post Termination Non-Competition Covenants.
- (a) For a period of two years after the date ("Termination Date") this Agreement is terminated, is canceled, or expires without renewal pursuant to section 5.2 of this Agreement, Master Franchisee agrees that neither Master Franchisee nor any Principal Equity Operator will (either directly or indirectly, for itself or themselves, or through, on behalf of, or in conjunction with, any person, persons, partnership, corporation or other entity) operate, manage, own, assist or hold an interest in (direct or indirect as an employee, officer, director, shareowner, partner or otherwise), or engage in, any competing business selling goods or offering services equivalent to BHC Products or the Franchised Business, within a radius of 25 miles of Master Franchisee's Territory or any other authorized retail location selling BHC Products, without Franchisor's express prior written consent, which consent may be withheld in Franchisor's sole and absolute discretion. Following termination or expiration of this Agreement, Master Franchisee must always refrain from any use, direct or indirect, of any Proprietary Information or Trade Secrets.
- (b) If any valid, applicable law or regulation of a competent governmental authority having jurisdiction over this Agreement or the parties hereto limits Franchisor's rights under section 11.2(a) above, then the section will be deemed amended (or deleted) to conform to the requirements of such laws and regulations, but in such event (unless deleted) the provisions of the Agreement thus affected will be amended only to the extent necessary to bring it within the requirements of the law or regulation.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, section 11.2 of the franchise agreement outlines the post-termination non-competition covenants for Master Franchisees. This section specifies the restrictions placed on the Master Franchisee after the termination, cancellation, or expiration of the agreement.
Specifically, for two years following the termination date, the Master Franchisee and any Principal Equity Operator are prohibited from operating, managing, owning, assisting, or holding an interest in any competing business that sells goods or offers services equivalent to Bhc Products or the Franchised Business. This restriction applies within a 25-mile radius of the Master Franchisee's Territory or any other authorized retail location selling Bhc Products. Bhc requires express prior written consent from Bhc to engage in such activities, which Bhc may withhold at its discretion.
The agreement also states that the Master Franchisee must refrain from using any Proprietary Information or Trade Secrets after the termination or expiration of the agreement. Furthermore, if any law or regulation limits Bhc's rights under section 11.2(a), the section will be amended to conform to those legal requirements, but only to the extent necessary to comply with the law or regulation. Finally, section 15.1(b) also states that upon termination, cancellation, or expiration of the agreement, the Master Franchisee must comply with section 11.2 regarding post-termination competition.